Understanding Your Unemployment Insurance Tax Responsibilities Including Form 1099-G

Note: This article was updated on Jan. 24, 2020

If you receive unemployment benefits from the Idaho Department of Labor, you need to know your responsibilities at tax time. Here are some answers to common questions regarding unemployment insurance and taxes.

Are unemployment insurance benefits taxable?1099 form_general

Unemployment insurance benefits are taxable, and if you collected or repaid unemployment insurance benefits during any taxable year, you are required to file a tax return for payments received or repaid. This information is reported to the Internal Revenue Service (IRS).

What do I need from the Idaho Department of Labor to file my taxes?

By the end of January, you should receive a 1099-G statement in the mail which shows the total taxable unemployment compensation issued to you from the State of Idaho for a calendar year. This letter is included in the mailing.

What if I didn’t receive my 1099-G in the mail?

1099-Gs are currently being mailed. If you do not receive your statement in the mail, the address you have on file may be incorrect. It is your responsibility to make sure the Idaho Department of Labor has the most up-to-date and accurate address. If your address has changed, log in to labor.idaho.gov/claimantportal and update it, even if you are no longer filing.

Can I access my 1099-G information online?

Yes. 1099-G information is now available online at labor.idaho.gov/claimantportal. You can download your 2018 payment information from labor.idaho.gov/claimantportal and select “Manage Claims” in the in the dark blue ribbon on the left side of the screen. Then select 1099-G reporting.

Can I change my tax withholding on my unemployment insurance payments?

Yes. You may choose to have 10 percent withheld for federal taxes. Tax withholdings can be  changed in the “Manage Claims” section of the Claimant Portal. Select the “Tax Withholding” option if you would like to change your tax withholdings.

What if I disagree with the amount listed on my 1099-G?

Benefits are reported based on the clear date of the payment, not on the week ending date(s) the payment was made. Before contacting us, verify your payments online at labor.idaho.gov/claimantportal and select the “Certification and Payments” option. If you still do not agree with the amount on your 1099-G after reviewing your payment summary, please call us at (208) 332-8942.

What if I re-paid an overpayment?

Your 1099-G will include any repayments received during the taxable year, excluding penalties and interest, which are not included because they are not PAID benefits.

Can I request a 1099-G from prior years?

Yes, you can view 1099-Gs prior to the current taxable year online at labor.idaho.gov/claimantportal.

I thought I paid into unemployment through taxes already? Why am I being taxed again?

The unemployment insurance benefits program is funded by employers through quarterly payroll taxes. Your benefits are considered income and are therefore taxable.

I have an outstanding overpayment with the department for unemployment insurance benefits that were overpaid. Will the department seize my refund?

Yes. If you have an overpayment balance, your state and federal tax refunds will be subject to seizure and will be applied to your overpayment. Please contact our collections bureau at (208) 332-3573 if you have a current overpayment.

What if I have other questions about my taxes?

The Idaho Department of Labor is not authorized to instruct you on how unemployment insurance affects your taxes. Please contact the Idaho State Tax Commission at (208) 334-7760 or the Internal Revenue Service at (800) 829-1040.

–Idaho Department of Labor